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Sara Stanley comments on CEOs pledge to reinvest any tax cuts

I was horrified to read the leading article in the AFR of 22 March 2018 ‘CEOs pledge to reinvest any tax cuts’. It goes on to report that the Business Council of Australia leadership plus ten chief executive officers of large companies sent a letter to all senators saying greater investment meant higher wages.

They wrote ‘We believe that a reduction in the corporate tax rate, as proposed through the government’s enterprise tax plan, is urgent and vital to keep Australia competitive. If the Senate passes this important legislation we, as some of the nations largest employers, commit to invest more in Australia which will lead to employing more Australians and therefore stronger wage growth as the tax cuts take effect.’

Leaving aside the real issue, which is tax reform, see the forgotten Henry Report, it is hard to believe that any sensible politicians will fall for this nonsense.

If the tax cuts are intended to lead to more jobs, higher wages and to better conditions for employees then at the very least our politicians should expect big business to give more specific guarantees in that regard. Senator Derryn Hinch wants a legislated guarantee if he agrees to the proposed legislation which the government and big business say is an unrealistic demand.

If you were to ask some employees what they would like they might say
provide more full-time employment and reduce casual employment. They could suggest that executive salaries, including bonuses, should be a reasonable multiple of wages. They might request more resources be put into the education and development of staff to ensure they remain abreast of technological developments. They might mention maternity leave, child care and family adjustment leave.

They might also ask for more sensible politicians.


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